LOS ANGELES, Nov. 4, 2021 /PRNewswire/ --
Highlights
- All Business Segments Returned to Positive Operating Income
and AOI Resulting in Company-Wide Operating Income of $137 million and AOI of $306 million
- Ticketmaster Delivered its Highest Operating Income and AOI
Quarter Ever at $114 million and
$172 million, respectively
- Fan Demand Led to Double-Digit Growth in Pricing and On-Site
Spending
- The Return to Live is Accelerating with Show Count Up
Double-Digits for 2022 Relative to This Time in 2019
- Sponsorship Commitments for 2022 Are Up Double-Digits
Relative to This Time in 2019
Live Nation Entertainment, Inc. (NYSE: LYV) today released
financial results for the quarter ended September 30,
2021.
Third quarter marked return to live at scale
Live
music roared back over the past quarter, driving all our business
segments to positive operating income and AOI for the first time in
two years, with a company-wide operating income and AOI of
$137 million and $306 million, respectively.
The 2021 summer concerts season rebounded quickly, with 17
million fans attending our shows in the quarter, as the return to
live reflected tremendous pent-up demand. Festivals were a
large part of our return to live this summer, with many of our
festivals selling out in record time and overall ticket sales for
major festivals were up 10% versus 2019. And we have had a
number of tours already sell over 500 thousand tickets for shows
this year, including sell-out tours by Harry Styles, Chris
Stapleton and others.
In addition to increased attendance, strong demand also enabled
improved pricing, with average amphitheater and major festival
pricing up double-digits versus 2019. And at our shows, fans
spent at record levels, with on-site spending per fan up over 20%
in amphitheaters and festivals compared to 2019.
We delivered these results within an operating environment that
required us to ramp up quickly, institute new health and safety
protocols, and staff our front line in a tight labor market.
On the health and safety front, we set the industry standard by
requiring proof of vaccine or testing for our shows, with no change
in fan purchasing behavior. More importantly, our protocols
proved effective in mitigating major Covid disruptions to our
business in the U.S. and the U.K. and allowed us to work in
conjunction with local health officials to mitigate transmission
risks from our events. On the labor front, we were able to
meet staffing requirements for our peak outdoor season without any
show disruption.
We also saw strong fan demand in our Ticketmaster results, which
delivered its highest operating income and AOI quarter ever.
Third quarter was Ticketmaster's fourth highest fee-bearing GTV
quarter ever excluding refunds, led by sports leagues restarting
and concert on-sales for 2022 ramping up. In addition,
Ticketmaster's secondary business delivered its highest GTV month
in September, showing continued growth in the segment even as
artists and content owners continue shifting more of the value to
primary sales.
As fans came back, so too did our brand partners who continue to
seek to connect to the live music fans. As a result, our
sponsorship and advertising business delivered over $100 million in operating income and AOI in the
quarter, the first time at this level since third quarter of
2019. The return of sponsorship and advertising has been
largely driven by our historical major partners, along with the
addition of new brands including Truly Hard Seltzer, as well as
Coinbase and Solana in the fintech space.
Leading indicators point to a record 2022
As we now look forward to 2022, we are encouraged by all our
leading indicators across each business. Through October, our
confirmed show count across amphitheaters, arenas and stadiums is
up double-digits relative to the same time in 2019 for 2020 shows,
and through mid-October, we have already sold 22 million tickets
for our shows in 2022. Demand has been stronger than ever for
many of these on-sales with one million tickets sold for each
Coldplay and Red Hot Chili Peppers tours, and several other tours
already selling over 500 thousand tickets.
Ticketmaster's on-sales for 2022 reinforce this demand, as we
expect the 2021 fourth quarter transacted fee-bearing GTV to be at
a record level, even after already selling 65 million fee-bearing
tickets for events next year. Ticketmaster has also added
clients representing 14 million net new fee-bearing tickets so far
this year, further accelerating its growth on a global basis.
Our sponsorship and advertising business has had similar success
with its clients, with our confirmed pipeline for 2022 up
double-digits relative to this time in 2019 for 2020.
At the same time, we are continuing our cost focus to deliver
$200 million in structural savings
from our pre-pandemic 2020 plan, making us more nimble and better
positioned to invest for future growth.
As we get close to turning the page on 2021, I remain more
convinced than ever on the power and potential of live
entertainment, and the strength of our position. No industry
was more impacted by the pandemic over the last two years, and no
industry has so proven its durability of demand in the face of such
disruption.
I fully expect we will continue to have bumps in the road in the
coming months, and it will take some time for international artists
to be touring on a truly global basis, but the fundamental strength
of live entertainment and Live Nation has proven out, and I expect
we will only continue to grow from here.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial
performance, operational matters and potentially other material
developments. Interested parties should visit the "News / Events"
section of the company's website at
investors.livenationentertainment.com to listen to the webcast.
Supplemental statistical and financial information to be provided
on the call, if any, will be posted to the "Financial Info" section
of the website. A replay of the webcast will also be available on
the Live Nation website.
Notice Regarding Financial Statements
The company has
provided certain financial statements at the end of this press
release for reference. These financial statements should be
read in conjunction with the full financial statements, and the
notes thereto, set forth in the company's Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission today and
available on the SEC's website at sec.gov.
About Live Nation Entertainment:
Live Nation Entertainment, Inc. (NYSE: LYV) is the world's leading
live entertainment company comprised of global market leaders:
Ticketmaster, Live Nation Concerts, and Live Nation Media &
Sponsorship. For additional information, visit
investors.livenationentertainment.com.
FINANCIAL
HIGHLIGHTS – THIRD QUARTER
(unaudited; $ in
millions)
|
|
|
Q3 2021
Reported
|
|
Q3 2020
Reported
|
|
Growth
|
|
Q3 2021 Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
2,151.6
|
|
|
$
|
154.8
|
|
|
*
|
|
$
|
2,132.5
|
|
|
*
|
Ticketing
|
374.2
|
|
|
(19.8)
|
|
|
*
|
|
372.3
|
|
|
*
|
Sponsorship &
Advertising
|
174.4
|
|
|
47.9
|
|
|
*
|
|
172.6
|
|
|
*
|
Other and
Eliminations
|
(1.7)
|
|
|
1.1
|
|
|
*
|
|
(1.6)
|
|
|
*
|
|
$
|
2,698.5
|
|
|
$
|
184.0
|
|
|
*
|
|
$
|
2,675.8
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(32.8)
|
|
|
$
|
(281.6)
|
|
|
88
|
%
|
|
$
|
(33.4)
|
|
|
88
|
%
|
Ticketing
|
114.3
|
|
|
(197.4)
|
|
|
*
|
|
114.9
|
|
|
*
|
Sponsorship &
Advertising
|
102.8
|
|
|
13.8
|
|
|
*
|
|
101.3
|
|
|
*
|
Other and
Eliminations
|
(0.1)
|
|
|
(4.8)
|
|
|
98
|
%
|
|
0.1
|
|
|
*
|
Corporate
|
(47.1)
|
|
|
(34.4)
|
|
|
(37)
|
%
|
|
(47.1)
|
|
|
(37)
|
%
|
|
$
|
137.1
|
|
|
$
|
(504.4)
|
|
|
*
|
|
$
|
135.8
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
59.6
|
|
|
$
|
(173.4)
|
|
|
*
|
|
$
|
58.2
|
|
|
*
|
Ticketing
|
171.8
|
|
|
(141.9)
|
|
|
*
|
|
171.8
|
|
|
*
|
Sponsorship &
Advertising
|
111.2
|
|
|
22.9
|
|
|
*
|
|
109.8
|
|
|
*
|
Other and
Eliminations
|
(1.2)
|
|
|
(5.1)
|
|
|
76
|
%
|
|
(1.2)
|
|
|
76
|
%
|
Corporate
|
(35.7)
|
|
|
(21.7)
|
|
|
(65)
|
%
|
|
(35.7)
|
|
|
(65)
|
%
|
|
$
|
305.7
|
|
|
$
|
(319.2)
|
|
|
*
|
|
$
|
302.9
|
|
|
*
|
|
* percentages are
not meaningful
|
FINANCIAL
HIGHLIGHTS – NINE MONTHS
(unaudited; $ in
millions)
|
|
|
9 Months
2021
Reported
|
|
9 Months
2020
Reported
|
|
Growth
|
|
9 Months
2021
Constant
Currency
|
|
Growth at
Constant
Currency
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
2,678.0
|
|
|
$
|
1,290.0
|
|
|
*
|
|
$
|
2,642.6
|
|
|
*
|
|
Ticketing
|
646.6
|
|
|
177.4
|
|
|
*
|
|
639.2
|
|
|
*
|
|
Sponsorship &
Advertising
|
241.7
|
|
|
156.6
|
|
|
54
|
%
|
|
237.8
|
|
|
52
|
%
|
|
Other and
Eliminations
|
(0.9)
|
|
|
(0.2)
|
|
|
*
|
|
(0.9)
|
|
|
*
|
|
|
$
|
3,565.4
|
|
|
$
|
1,623.8
|
|
|
*
|
|
$
|
3,518.7
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(324.5)
|
|
|
$
|
(722.6)
|
|
|
55
|
%
|
|
$
|
(316.6)
|
|
|
56
|
%
|
|
Ticketing
|
37.4
|
|
|
(480.5)
|
|
|
*
|
|
43.3
|
|
|
*
|
|
Sponsorship &
Advertising
|
101.6
|
|
|
40.8
|
|
|
*
|
|
99.4
|
|
|
*
|
|
Other and
Eliminations
|
(0.1)
|
|
|
(13.0)
|
|
|
99
|
%
|
|
(0.1)
|
|
|
99
|
%
|
|
Corporate
|
(107.7)
|
|
|
(89.9)
|
|
|
20
|
%
|
|
(107.8)
|
|
|
(20)
|
%
|
|
|
$
|
(293.3)
|
|
|
$
|
(1,265.2)
|
|
|
77
|
%
|
|
$
|
(281.8)
|
|
|
78
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(99.0)
|
|
|
$
|
(472.3)
|
|
|
79
|
%
|
|
$
|
(96.7)
|
|
|
80
|
%
|
|
Ticketing
|
208.4
|
|
|
(300.8)
|
|
|
*
|
|
210.0
|
|
|
*
|
|
Sponsorship &
Advertising
|
127.8
|
|
|
67.7
|
|
|
89
|
%
|
|
125.6
|
|
|
85
|
%
|
|
Other and
Eliminations
|
(4.6)
|
|
|
(11.7)
|
|
|
61
|
%
|
|
(4.6)
|
|
|
61
|
%
|
|
Corporate
|
(69.0)
|
|
|
(54.5)
|
|
|
(27)
|
%
|
|
(69.0)
|
|
|
(27)
|
%
|
|
|
$
|
163.6
|
|
|
$
|
(771.6)
|
|
|
*
|
|
$
|
165.3
|
|
|
*
|
|
|
* percentages are
not meaningful
|
- As of September 30, 2021, total
cash and cash equivalents were $4.6
billion, which includes $1.3
billion in ticketing client cash and $1.7 billion in free cash. This free cash, along
with $571 million of available debt
capacity, gives the company $2.3
billion of available liquidity. The company believes this
level of liquidity will provide it with the runway it needs as more
shows returns.
- Event-related deferred revenue was $1.9
billion as of September 30,
2021 compared to $1.4 billion
as of September 30, 2020. In
addition, the company had long-term deferred revenue of
$101 million for events scheduled
more than one year out as of September 30,
2021.
- For the nine months ended September 30,
2021, net cash provided by operating activities was
$1.0 billion and free cash flow —
adjusted was $(129.9) million.
- The company currently expects capital expenditures for the full
year to be approximately $185 million
in 2021, with over 60% of this spend going into revenue generating
projects.
KEY OPERATING
METRICS
(unaudited)
|
|
|
Q3
2021
|
|
Q3
2020
|
|
9 Months
2021
|
|
9 Months
2020
|
|
(in thousands
except estimated events)
|
Concerts
(1)
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
North
America
|
4,235
|
|
|
219
|
|
|
5,695
|
|
|
5,016
|
|
International
|
1,328
|
|
|
141
|
|
|
2,252
|
|
|
2,571
|
|
Total estimated
events
|
5,563
|
|
|
360
|
|
|
7,947
|
|
|
7,587
|
|
Estimated
fans:
|
|
|
|
|
|
|
|
North
America
|
13,425
|
|
|
204
|
|
|
14,151
|
|
|
5,943
|
|
International
|
3,427
|
|
|
61
|
|
|
4,562
|
|
|
4,779
|
|
Total estimated
fans
|
16,852
|
|
|
265
|
|
|
18,713
|
|
|
10,722
|
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
43,296
|
|
|
1,323
|
|
|
76,222
|
|
|
28,658
|
|
Estimated number of
non-fee-bearing tickets
|
39,798
|
|
|
8,392
|
|
|
78,174
|
|
|
70,031
|
|
Total estimated
tickets sold
|
83,094
|
|
|
9,715
|
|
|
154,396
|
|
|
98,689
|
|
_________
|
|
|
(1)
|
Events generally
represent a single performance by an artist. Fans generally
represent the number of people who attend an event. Festivals are
counted as one event in the quarter in which the festival begins,
but the number of fans is based on the days the fans were present
at the festival and thus can be reported across multiple quarters.
Events and fan attendance metrics are estimated each
quarter.
|
|
|
(2)
|
The fee-bearing
tickets estimated above include primary and secondary tickets that
are sold using our Ticketmaster systems or that we issue through
affiliates. This metric includes primary tickets sold during the
period regardless of event timing, except for our own events where
our concert promoters control ticketing which are reported when the
events occur. The non-fee-bearing tickets estimated above include
primary tickets sold using our Ticketmaster systems, through season
seat packages and our venue clients' box offices, along with
tickets sold on our "do it yourself" platform. These ticketing
metrics are net of any refunds requested and any cancellations that
occurred during the period and up to the time of reporting of these
consolidated financial statements, which may result in a negative
number. Fee-bearing tickets sold above are net of refunds of
5.8 million and 5.2 million tickets for the three months
ended September 30, 2021 and 2020, respectively, and
12.9 million and 23.2 million tickets for the nine months
ended September 30, 2021 and 2020, respectively.
|
Reconciliation of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation
of Free Cash Flow — Adjusted to Net Cash
Provided by (Used in) Operating Activities
|
|
($ in
millions)
|
Q3
2021
|
|
Q3
2020
|
Net cash used in
operating activities
|
$
|
(145.3)
|
|
|
$
|
(566.5)
|
|
Less: Changes in
operating assets and liabilities (working capital)
|
356.8
|
|
|
223.9
|
|
Free cash flow from
earnings
|
$
|
211.5
|
|
|
$
|
(342.6)
|
|
Less: Maintenance
capital expenditures
|
(22.9)
|
|
|
(10.3)
|
|
Distributions to noncontrolling interests
|
(11.1)
|
|
|
(5.2)
|
|
Free cash flow —
adjusted
|
$
|
177.5
|
|
|
$
|
(358.1)
|
|
|
|
|
|
Net cash used in
investing activities
|
$
|
(61.5)
|
|
|
$
|
(33.9)
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
$
|
820.8
|
|
|
$
|
(100.5)
|
|
|
($ in
millions)
|
9 Months
2021
|
|
9 Months
2020
|
Net cash provided
by (used in) operating activities
|
$
|
1,024.7
|
|
|
$
|
(956.9)
|
|
Less: Changes in
operating assets and liabilities (working capital)
|
(1,091.8)
|
|
|
120.9
|
|
Free cash flow from
earnings
|
$
|
(67.1)
|
|
|
$
|
(836.0)
|
|
Less: Maintenance
capital expenditures
|
(37.2)
|
|
|
(56.0)
|
|
Distributions to noncontrolling interests
|
(25.6)
|
|
|
(31.5)
|
|
Free cash flow —
adjusted
|
$
|
(129.9)
|
|
|
$
|
(923.5)
|
|
|
|
|
|
Net cash used in
investing activities
|
$
|
(111.8)
|
|
|
$
|
(224.5)
|
|
|
|
|
|
Net cash provided
by financing activities
|
$
|
1,222.3
|
|
|
$
|
1,361.6
|
|
Reconciliation
of Free Cash to Cash and Cash Equivalents
|
|
($ in
millions)
|
September
30,
2021
|
Cash and cash
equivalents
|
$
|
4,628.9
|
|
Client
cash
|
(1,259.3)
|
|
Deferred revenue —
event-related
|
(1,869.2)
|
|
Accrued artist
fees
|
(69.1)
|
|
Collections on behalf
of others
|
(87.1)
|
|
Prepaid expenses —
event-related
|
402.6
|
|
Free cash
|
$
|
1,746.8
|
|
Forward-Looking Statements, Non-GAAP Financial Measures and
Reconciliations:
Certain statements in this press release, including the
Supplemental Information that follows, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include, but
are not limited to statements regarding leading indicators pointing
to a record 2022; the company's current expectations for fourth
quarter 2021 transacted gross transaction value (GTV) in its
Ticketmaster business; the company's cost focus and anticipated
$200 million in structural savings
from its pre-pandemic 2020 plan; the strength of the company's
positioning and prospects for future growth; the company's belief
that its level of liquidity will provide it with the runway it
needs as more shows return; the company's current expectations for
capital expenditures for 2021; and estimated additional fan refunds
for the year. Live Nation wishes to caution you that there are some
known and unknown factors that could cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by such forward-looking statements, including
but not limited to operational challenges in achieving strategic
objectives and executing on the company's plans, the risk that the
company's markets do not evolve as anticipated, the potential
impact of any economic slowdown and operational challenges
associated with selling tickets and staging events.
Live Nation refers you to the documents it files from time to
time with the U.S. Securities and Exchange Commission, or SEC,
specifically the section titled "Item 1A. Risk Factors" of the
company's most recent Annual Report filed on Form 10-K, and
Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K,
which contain and identify other important factors that could cause
actual results to differ materially from those contained in the
company's projections or forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking
statements which speak only as of the date on which they are made.
All subsequent written and oral forward-looking statements by or
concerning Live Nation are expressly qualified in their entirety by
the cautionary statements above. Live Nation does not undertake any
obligation to publicly update or revise any forward-looking
statements because of new information, future events or
otherwise.
This press release contains certain non-GAAP financial measures
as defined by SEC Regulation G. A reconciliation of each such
measure to its most directly comparable GAAP financial measure,
together with an explanation of why management believes that these
non-GAAP financial measures provide useful information to
investors, is provided herein.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP
financial measure that we define as operating income (loss) before
certain stock-based compensation expense, loss (gain) on disposal
of operating assets, depreciation and amortization (including
goodwill impairment), amortization of non-recoupable ticketing
contract advances and acquisition expenses (including transaction
costs, changes in the fair value of accrued acquisition-related
contingent consideration obligations, and acquisition-related
severance and compensation). We use AOI to evaluate the performance
of our operating segments. We believe that information about AOI
assists investors by allowing them to evaluate changes in the
operating results of our portfolio of businesses separate from
non-operational factors that affect net income (loss), thus
providing insights into both operations and the other factors that
affect reported results. AOI is not calculated or presented in
accordance with GAAP. A limitation of the use of AOI as a
performance measure is that it does not reflect the periodic costs
of certain amortizing assets used in generating revenue in our
business. Accordingly, AOI should be considered in addition to, and
not as a substitute for, operating income (loss), net income
(loss), and other measures of financial performance reported in
accordance with GAAP. Furthermore, this measure may vary among
other companies; thus, AOI as presented herein may not be
comparable to similarly titled measures of other companies.
Constant Currency is a non-GAAP financial measure. We calculate
currency impacts as the difference between current period activity
translated using the current period's currency exchange rates and
the comparable prior period's currency exchange rates. We present
constant currency information to provide a framework for assessing
how our underlying businesses performed excluding the effect of
foreign currency rate fluctuations.
Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial
measure that we define as net cash provided by (used in) operating
activities less changes in operating assets and liabilities, less
maintenance capital expenditures, less distributions to
noncontrolling interest partners. We use FCF among other measures,
to evaluate the ability of operations to generate cash that is
available for purposes other than maintenance capital expenditures.
We believe that information about FCF provides investors with an
important perspective on the cash available to service debt, make
acquisitions, and for revenue generating capital expenditures. FCF
is not calculated or presented in accordance with GAAP. A
limitation of the use of FCF as a performance measure is that it
does not necessarily represent funds available for operations and
is not necessarily a measure of our ability to fund our cash needs.
Accordingly, FCF should be considered in addition to, and not as a
substitute for, net cash provided by (used in) operating activities
and other measures of financial performance reported in accordance
with GAAP. Furthermore, this measure may vary among other
companies; thus, FCF as presented herein may not be comparable to
similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that we define as
cash and cash equivalents less ticketing-related client funds, less
event-related deferred revenue, less accrued expenses due to
artists and cash collected on behalf of others, plus event-related
prepaids. We use free cash as a proxy for how much cash we have
available to, among other things, optionally repay debt balances,
make acquisitions and fund revenue generating capital expenditures.
Free cash is not calculated or presented in accordance with GAAP. A
limitation of the use of free cash as a performance measure is that
it does not necessarily represent funds available from operations
and it is not necessarily a measure of our ability to fund our cash
needs. Accordingly, free cash should be considered in addition to,
and not as a substitute for, cash and cash equivalents and other
measures of financial performance reported in accordance with GAAP.
Furthermore, this measure may vary among other companies; thus,
free cash as presented herein may not be comparable to similarly
titled measures of other companies.
Reconciliations of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation
of Adjusted Operating Income (Loss) to Operating Income
(Loss)
|
|
($ in
millions)
|
Operating income
(loss)
|
|
Stock-based
compensation expense
|
|
Loss (gain) on
disposal of operating assets
|
|
Depreciation
and
amortization
|
|
Amortization of
non-recoupable ticketing contract advances
|
|
Acquisition
expenses
|
|
Adjusted operating
income (loss) reported
|
|
Foreign exchange
impact
|
|
Adjusted operating
income (loss) constant currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(32.8)
|
|
|
$
|
14.2
|
|
|
$
|
(1.1)
|
|
|
$
|
59.5
|
|
|
$
|
—
|
|
|
$
|
19.8
|
|
|
$
|
59.6
|
|
|
$
|
(1.4)
|
|
|
$
|
58.2
|
|
Ticketing
|
114.3
|
|
|
3.3
|
|
|
(0.1)
|
|
|
32.0
|
|
|
21.7
|
|
|
0.6
|
|
|
171.8
|
|
|
—
|
|
|
171.8
|
|
Sponsorship &
Advertising
|
102.8
|
|
|
1.3
|
|
|
—
|
|
|
7.2
|
|
|
—
|
|
|
(0.1)
|
|
|
111.2
|
|
|
(1.4)
|
|
|
109.8
|
|
Other &
Eliminations
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2)
|
|
|
0.1
|
|
|
(1.2)
|
|
|
—
|
|
|
(1.2)
|
|
Corporate
|
(47.1)
|
|
|
8.5
|
|
|
0.1
|
|
|
2.5
|
|
|
—
|
|
|
0.3
|
|
|
(35.7)
|
|
|
—
|
|
|
(35.7)
|
|
Total Live
Nation
|
$
|
137.1
|
|
|
$
|
27.3
|
|
|
$
|
(1.1)
|
|
|
$
|
101.2
|
|
|
$
|
20.5
|
|
|
$
|
20.7
|
|
|
$
|
305.7
|
|
|
$
|
(2.8)
|
|
|
$
|
302.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(281.6)
|
|
|
$
|
39.6
|
|
|
$
|
0.2
|
|
|
$
|
65.8
|
|
|
$
|
—
|
|
|
$
|
2.6
|
|
|
$
|
(173.4)
|
|
|
$
|
—
|
|
|
$
|
(173.4)
|
|
Ticketing
|
(197.4)
|
|
|
5.4
|
|
|
—
|
|
|
42.6
|
|
|
9.2
|
|
|
(1.7)
|
|
|
(141.9)
|
|
|
—
|
|
|
(141.9)
|
|
Sponsorship &
Advertising
|
13.8
|
|
|
2.5
|
|
|
—
|
|
|
6.6
|
|
|
—
|
|
|
—
|
|
|
22.9
|
|
|
—
|
|
|
22.9
|
|
Other &
Eliminations
|
(4.8)
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
(2.5)
|
|
|
—
|
|
|
(5.1)
|
|
|
—
|
|
|
(5.1)
|
|
Corporate
|
(34.4)
|
|
|
9.2
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
0.8
|
|
|
(21.7)
|
|
|
—
|
|
|
(21.7)
|
|
Total Live
Nation
|
$
|
(504.4)
|
|
|
$
|
56.7
|
|
|
$
|
0.2
|
|
|
$
|
119.9
|
|
|
$
|
6.7
|
|
|
$
|
1.7
|
|
|
$
|
(319.2)
|
|
|
$
|
—
|
|
|
$
|
(319.2)
|
|
|
|
Nine Months Ended
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(324.5)
|
|
|
$
|
34.2
|
|
|
$
|
(1.0)
|
|
|
$
|
180.9
|
|
|
$
|
—
|
|
|
$
|
11.4
|
|
|
$
|
(99.0)
|
|
|
$
|
2.3
|
|
|
$
|
(96.7)
|
|
Ticketing
|
37.4
|
|
|
12.2
|
|
|
(0.1)
|
|
|
103.4
|
|
|
53.8
|
|
|
1.7
|
|
|
208.4
|
|
|
1.6
|
|
|
210.0
|
|
Sponsorship &
Advertising
|
101.6
|
|
|
4.3
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
|
—
|
|
|
127.8
|
|
|
(2.2)
|
|
|
125.6
|
|
Other &
Eliminations
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(4.6)
|
|
|
—
|
|
|
(4.6)
|
|
|
—
|
|
|
(4.6)
|
|
Corporate
|
(107.7)
|
|
|
29.5
|
|
|
0.1
|
|
|
7.6
|
|
|
—
|
|
|
1.5
|
|
|
(69.0)
|
|
|
—
|
|
|
(69.0)
|
|
Total Live
Nation
|
$
|
(293.3)
|
|
|
$
|
80.2
|
|
|
$
|
(1.0)
|
|
|
$
|
313.8
|
|
|
$
|
49.2
|
|
|
$
|
14.6
|
|
|
$
|
163.6
|
|
|
$
|
1.7
|
|
|
$
|
165.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(722.6)
|
|
|
$
|
66.4
|
|
|
$
|
0.9
|
|
|
$
|
202.3
|
|
|
$
|
—
|
|
|
$
|
(19.3)
|
|
|
$
|
(472.3)
|
|
|
$
|
—
|
|
|
$
|
(472.3)
|
|
Ticketing
|
(480.5)
|
|
|
11.2
|
|
|
—
|
|
|
125.1
|
|
|
44.1
|
|
|
(0.7)
|
|
|
(300.8)
|
|
|
—
|
|
|
(300.8)
|
|
Sponsorship &
Advertising
|
40.8
|
|
|
5.2
|
|
|
—
|
|
|
21.8
|
|
|
—
|
|
|
(0.1)
|
|
|
67.7
|
|
|
—
|
|
|
67.7
|
|
Other &
Eliminations
|
(13.0)
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
|
(5.3)
|
|
|
—
|
|
|
(11.7)
|
|
|
—
|
|
|
(11.7)
|
|
Corporate
|
(89.9)
|
|
|
24.2
|
|
|
—
|
|
|
9.0
|
|
|
—
|
|
|
2.2
|
|
|
(54.5)
|
|
|
—
|
|
|
(54.5)
|
|
Total Live
Nation
|
$
|
(1,265.2)
|
|
|
$
|
107.0
|
|
|
$
|
0.9
|
|
|
$
|
364.8
|
|
|
$
|
38.8
|
|
|
$
|
(17.9)
|
|
|
$
|
(771.6)
|
|
|
$
|
—
|
|
|
$
|
(771.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
CONSOLIDATED
BALANCE SHEETS
(unaudited)
|
|
|
September
30,
2021
|
|
December
31,
2020
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
|
4,628,880
|
|
|
$
|
2,537,787
|
|
Accounts receivable, less allowance of $53,116 and $72,904,
respectively
|
1,182,242
|
|
|
486,734
|
|
Prepaid expenses
|
691,086
|
|
|
577,130
|
|
Restricted cash
|
4,317
|
|
|
8,652
|
|
Other current assets
|
48,766
|
|
|
39,465
|
|
Total current
assets
|
6,555,291
|
|
|
3,649,768
|
|
Property, plant and
equipment, net
|
1,041,854
|
|
|
1,101,414
|
|
Operating lease
assets
|
1,390,650
|
|
|
1,424,223
|
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
732,276
|
|
|
855,600
|
|
Indefinite-lived intangible assets
|
369,016
|
|
|
369,058
|
|
Goodwill
|
2,109,719
|
|
|
2,129,203
|
|
Long-term
advances
|
651,794
|
|
|
668,756
|
|
Other long-term
assets
|
480,144
|
|
|
391,281
|
|
Total
assets
|
$
|
13,330,744
|
|
|
$
|
10,589,303
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
|
1,499,131
|
|
|
$
|
744,096
|
|
Accounts payable
|
111,142
|
|
|
86,356
|
|
Accrued expenses
|
1,445,840
|
|
|
894,149
|
|
Deferred revenue
|
2,303,373
|
|
|
1,839,323
|
|
Current portion of long-term debt, net
|
46,214
|
|
|
53,415
|
|
Current portion of operating lease liabilities
|
111,090
|
|
|
107,147
|
|
Other current liabilities
|
41,314
|
|
|
72,083
|
|
Total current
liabilities
|
5,558,104
|
|
|
3,796,569
|
|
Long-term debt,
net
|
5,686,905
|
|
|
4,855,096
|
|
Long-term operating
lease liabilities
|
1,448,270
|
|
|
1,445,674
|
|
Long-term deferred
income taxes
|
174,083
|
|
|
170,759
|
|
Other long-term
liabilities
|
242,811
|
|
|
182,508
|
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
262,347
|
|
|
272,449
|
|
Stockholders'
equity
|
|
|
|
Common stock
|
2,218
|
|
|
2,145
|
|
Additional paid-in capital
|
2,903,613
|
|
|
2,386,790
|
|
Accumulated deficit
|
(3,132,813)
|
|
|
(2,676,833)
|
|
Cost
of shares held in treasury
|
(6,865)
|
|
|
(6,865)
|
|
Accumulated other comprehensive loss
|
(170,997)
|
|
|
(177,009)
|
|
Total Live Nation
stockholders' equity
|
(404,844)
|
|
|
(471,772)
|
|
Noncontrolling
interests
|
363,068
|
|
|
338,020
|
|
Total
equity
|
(41,776)
|
|
|
(133,752)
|
|
Total liabilities
and equity
|
$
|
13,330,744
|
|
|
$
|
10,589,303
|
|
LIVE NATION
ENTERTAINMENT, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(in thousands,
except share and per share data)
|
Revenue
|
$
|
2,698,722
|
|
|
$
|
184,018
|
|
|
$
|
3,565,277
|
|
|
$
|
1,623,795
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses
|
1,969,912
|
|
|
130,749
|
|
|
2,346,998
|
|
|
1,199,126
|
|
Selling, general and
administrative expenses
|
446,929
|
|
|
405,934
|
|
|
1,098,676
|
|
|
1,243,307
|
|
Depreciation and
amortization
|
101,235
|
|
|
119,938
|
|
|
313,758
|
|
|
364,785
|
|
Loss (gain) on
disposal of operating assets
|
(1,148)
|
|
|
208
|
|
|
(1,038)
|
|
|
897
|
|
Corporate
expenses
|
44,649
|
|
|
31,630
|
|
|
100,195
|
|
|
80,858
|
|
Operating income
(loss)
|
137,145
|
|
|
(504,441)
|
|
|
(293,312)
|
|
|
(1,265,178)
|
|
Interest
expense
|
70,407
|
|
|
66,093
|
|
|
210,146
|
|
|
162,781
|
|
Interest
income
|
(1,333)
|
|
|
(2,810)
|
|
|
(3,953)
|
|
|
(9,712)
|
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
(7,025)
|
|
|
2,615
|
|
|
(4,608)
|
|
|
6,656
|
|
Gain from sale of
investments in nonconsolidated affiliates
|
(30,633)
|
|
|
(2,514)
|
|
|
(83,580)
|
|
|
(2,479)
|
|
Other expense
(income), net
|
12,441
|
|
|
(8,463)
|
|
|
19,903
|
|
|
(9,043)
|
|
Income (loss) before
income taxes
|
93,288
|
|
|
(559,362)
|
|
|
(431,220)
|
|
|
(1,413,381)
|
|
Income tax expense
(benefit)
|
6,421
|
|
|
(16,904)
|
|
|
15,095
|
|
|
(49,417)
|
|
Net income
(loss)
|
86,867
|
|
|
(542,458)
|
|
|
(446,315)
|
|
|
(1,363,964)
|
|
Net income (loss)
attributable to noncontrolling interests
|
39,989
|
|
|
(13,556)
|
|
|
9,665
|
|
|
(82,761)
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
|
46,878
|
|
|
$
|
(528,902)
|
|
|
$
|
(455,980)
|
|
|
$
|
(1,281,203)
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share available to common stockholders of Live
Nation
|
$
|
0.20
|
|
|
$
|
(2.45)
|
|
|
$
|
(2.13)
|
|
|
$
|
(6.08)
|
|
Diluted net income
(loss) per common share available to common stockholders of Live
Nation
|
$
|
0.19
|
|
|
$
|
(2.45)
|
|
|
$
|
(2.13)
|
|
|
$
|
(6.08)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
216,888,355
|
|
|
212,593,719
|
|
|
215,716,239
|
|
|
211,781,620
|
|
Diluted
|
223,800,400
|
|
|
212,593,719
|
|
|
215,716,239
|
|
|
211,781,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income (loss) available to common stockholders of Live
Nation:
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
|
46,878
|
|
|
$
|
(528,902)
|
|
|
$
|
(455,980)
|
|
|
$
|
(1,281,203)
|
|
Accretion of redeemable
noncontrolling interests
|
(4,245)
|
|
|
6,990
|
|
|
(4,210)
|
|
|
(5,955)
|
|
Basic and diluted net
income (loss) available to common stockholders of Live
Nation
|
$
|
42,633
|
|
|
$
|
(521,912)
|
|
|
$
|
(460,190)
|
|
|
$
|
(1,287,158)
|
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net loss
|
$
|
(446,315)
|
|
|
$
|
(1,363,964)
|
|
Reconciling
items:
|
|
|
|
Depreciation
|
167,170
|
|
|
184,391
|
|
Amortization
|
146,588
|
|
|
180,394
|
|
Amortization of
non-recoupable ticketing contract advances
|
49,214
|
|
|
38,833
|
|
Deferred income tax
expense (benefit)
|
4,365
|
|
|
(22,615)
|
|
Amortization of debt
issuance costs and discounts
|
27,916
|
|
|
24,201
|
|
Non-cash compensation
expense
|
80,165
|
|
|
106,965
|
|
Unrealized changes in
fair value of contingent consideration
|
(6,998)
|
|
|
(25,745)
|
|
Equity in losses of
nonconsolidated affiliates, net of distributions
|
6,396
|
|
|
8,266
|
|
Provision for
uncollectible accounts receivable
|
(14,006)
|
|
|
48,413
|
|
Gain on sale of
investments in nonconsolidated affiliates
|
(83,580)
|
|
|
(2,479)
|
|
Other, net
|
2,015
|
|
|
(12,681)
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
Decrease (increase) in
accounts receivable
|
(690,105)
|
|
|
406,202
|
|
Decrease (increase) in
prepaid expenses and other assets
|
(92,635)
|
|
|
1,793
|
|
Increase (decrease) in
accounts payable, accrued expenses and other liabilities
|
1,323,448
|
|
|
(1,213,409)
|
|
Increase in deferred
revenue
|
551,059
|
|
|
684,532
|
|
Net cash provided by
(used in) operating activities
|
1,024,697
|
|
|
(956,903)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Advances of notes
receivable
|
(24,476)
|
|
|
(12,232)
|
|
Collections of notes
receivable
|
16,500
|
|
|
13,838
|
|
Investments made in
nonconsolidated affiliates
|
(55,246)
|
|
|
(9,728)
|
|
Purchases of
property, plant and equipment
|
(103,914)
|
|
|
(187,036)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(19,594)
|
|
|
(37,283)
|
|
Proceeds from sale of
investments in nonconsolidated affiliates
|
80,593
|
|
|
3,753
|
|
Other, net
|
(5,622)
|
|
|
4,156
|
|
Net cash used in
investing activities
|
(111,759)
|
|
|
(224,532)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from
long-term debt, net of debt issuance costs
|
904,164
|
|
|
1,608,462
|
|
Payments on long-term
debt
|
(93,168)
|
|
|
(24,202)
|
|
Contributions from
noncontrolling interests
|
15,985
|
|
|
2,568
|
|
Distributions to
noncontrolling interests
|
(25,632)
|
|
|
(31,473)
|
|
Purchases and sales
of noncontrolling interests, net
|
(3,273)
|
|
|
(106,971)
|
|
Proceeds from
exercise of stock options
|
30,322
|
|
|
18,092
|
|
Proceeds from sale of
common stock, net of issuance costs
|
449,415
|
|
|
—
|
|
Taxes paid for net
share settlement of equity awards
|
(42,731)
|
|
|
(42,818)
|
|
Payments for deferred
and contingent consideration
|
(12,845)
|
|
|
(62,035)
|
|
Other, net
|
84
|
|
|
13
|
|
Net cash provided by
financing activities
|
1,222,321
|
|
|
1,361,636
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(48,501)
|
|
|
(20,952)
|
|
Net increase in cash,
cash equivalents, and restricted cash
|
2,086,758
|
|
|
159,249
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
2,546,439
|
|
|
2,474,242
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
4,633,197
|
|
|
$
|
2,633,491
|
|
THIRD QUARTER
2021
Supplemental
Earnings Tables
(unaudited)
|
|
Free Cash &
Cash Used in the Quarter
|
|
Changes to the
company's free cash balance from the end of second quarter of 2021
to the end of the third quarter of 2021 were as follows:
|
|
|
(in
millions)
|
Free cash balance
at 6/30/2021
|
$
|
1,103
|
|
Operational burn
*
|
(384)
|
|
Non-operational cash
uses, including capital expenditures, acquisition activity, net
advances and interest payments
|
(197)
|
|
Operational
contribution margin **
|
747
|
|
Draw down on Term
Loan A
|
400
|
|
Equity raise for
OCESA acquisition
|
449
|
|
Inflows / (outflows)
from timing classification changes between short-term and
long-term
|
(371)
|
|
Free cash balance
at 9/30/2021
|
$
|
1,747
|
|
|
* Operational burn is
our SG&A and Corporate costs less bonus, severance and bad
debt.
|
|
** Operational
contribution margin is our contribution margin less one-time items
(Ticketing refunds, insurance recoveries, and artist advance
reserves).
|
Event-Related
Deferred Revenue
|
|
The company's
deferred revenue for events over the next 12 months was $1,869
million as of September 30, 2021, compared to
$2,125 million as of June 30, 2021. The decrease was due to
shows that played off and estimated refunds from Live Nation cash
were partially offset by ticket sales in the third quarter and the
shift from long-term deferred revenue.
|
|
|
(in
millions)
|
Current Deferred
Revenue as of 6/30/2021
|
$
|
2,125
|
|
Shift from long-term
deferred revenue to current deferred revenue
|
280
|
|
Adjustment to
estimated additional future refunds from Live Nation-held
cash
|
20
|
|
Currency
impacts
|
(25)
|
|
Ticket sales in the
third quarter of 2021
|
474
|
|
Cash from shows that
played off
|
(841)
|
|
Estimated refunds
from Live Nation cash
|
(174)
|
|
Other /
Net
|
10
|
|
Current Deferred
Revenue as of 9/30/2021
|
$
|
1,869
|
|
|
In addition, the
company had approximately $101 million of long-term event-related
deferred revenue at the end of the third quarter of
2021.
|
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SOURCE Live Nation Entertainment